Early on in the fix-and-flip craze, Texas became a hotspot for all sorts of TV shows centered on home remodeling entrepreneurs finding an ideal-yet-neglected property and turning it into someone’s dream home (and making a hefty profit to boot!).
But what started out as a craze has matured into a full-formed and stable market. Flipping homes is not a mere fad in the Lone Star State. It is a legitimate, needed, and profitable business venture.
Why Texas is a Great Market for Flipping Homes
Why has Texas been one of the most profitable and sustainable markets for flipping homes? There is a combination of a few reasons. One of which is the economic opportunities:
Despite the pandemic, Texas business is surging, with many large companies — like Samsung and Tesla — building new offices and factories in the Loan Star State. In addition, Texas has no state income tax, making moving here a pay raise in itself.
Secondly, is the sheer size and open land of the state. Unlike major metropolitan areas on the East and West coasts, nearly all major Texas cities are inland and have room to expand. This means Texas land tends to be more affordable than other states.
Lastly, is population growth. Every year, the state continues to be one of the fastest-growing in the nation. For home flippers, this means there will always be a steady source of buyers.
Best Cities to Flip Houses in Texas
Last year, we looked at some of the best emerging cities for flipping homes in Texas. Since that time, the market has boomed incredibly, making the entire state an emerging market. Below are some of the cities that we have seen churn out the most profitable projects for loanees in Texas.
Flipping Houses in Austin
Of the Texas markets that have benefited the most from the latest housing boom, Austin is at the top of the list. The average home price in the area surrounding the state capitol has increased by 31% year-over-year, with some zip codes seeing a price increase of well over 65%!
Driving this growth is the influx of some of the job opportunities mentioned above as well as the influx of movers from other states such as California looking to cash out of their West coast home and retire in Texas.
Flipping Houses in Dallas-Fort Worth
Just up the road a couple of hours is the DFW metroplex. Like its southern neighbor, the city has seen a surge in home prices and flipping profit. The average Dallas home now sells for over $340,000. This is an increase of 22% year-over-year.
The sprawling metroplex has plenty of opportunities for flipping. Whether it’s in Arlington, Irving, Grapevine, or Flower Mound, the entire area is blossoming and entrepreneurial opportunities abound.
Flipping Houses in San Antonio
To the south is San Antonio. While still more affordable than Dallas and Austin, the home of the Alamo has likewise seen growth in its housing market. With an increase of 16.6% in the median home price to $280,000 is yet another promising city to flip homes in.
But don’t let the lower price fool you. Homes in San Antonio, like in other Texas markets, are selling well over the asking price and flippers are making a generous profit.
How to Start Flipping Houses in Texas
To start your flipping adventure you’re going to need to have the capital upfront to purchase your investment. But here’s the catch: Homes are selling too fast to be purchased with a traditional bank loan.
Houses in Texas are now selling in a matter of days and weeks, not months. This means those buying a home are competing with cash offers who can make their offers immediately once the property reaches the market.
In order to stay competitive, you will need to have access to a quicker form of funding if you don’t have the cash on hand.
Getting a Texas Hard Money Loan
If you don’t have the cash on hand and need funds faster than a traditional bank can provide, you do have a third option: a hard money loan.
When you secure your capital through a private lender, you ensure you have the cash you need to buy in as little as 5 days.
In fact, at Park Place Finance, we’ve been able to get some entrepreneurs funded in as little as 24 hours.
Get Started on Your Texas Fix-and-Flip Project
Are you ready to take advantage of the booming Texas housing market? If so, schedule a time to talk with us. We are located in Austin, Texas, and understand the current housing economy better than anyone else.
The first step in flipping a home is to have the cash to purchase that investment you’re eyeing. Whether you’re a seasoned pro or new to the world of fix-and-flips, Park Place Finance is your trusted partner in the Texas market.